MERA Oil advances $5 billion Gulf refinery plan

MERA Oil has shortlisted three Gulf locations for a planned $5 billion refinery and energy export complex, with the US-Saudi consortium aiming to select a host jurisdiction before the end of 2026.

The proposed development would include a 200,000-barrel-a-day refinery, deepwater port facilities, large crude and refined-product storage capacity and marine export infrastructure. The shortlisted sites are outside the Strait of Hormuz, reflecting growing commercial interest in export routes less exposed to disruption at the strategic waterway.

MERA Oil was formed by Fort Worth-based energy developer MWG Enterprises, Patel Family Office and PWS, an associate company of Saudi Arabia’s AHQ Group. The sponsors said they had spent three years assessing locations across the Gulf and had held detailed discussions with the three candidate jurisdictions for about two years.

The consortium has not disclosed the shortlisted locations. However, its requirement for deepwater access outside the Strait of Hormuz narrows the field to jurisdictions with established or planned ports connected directly to the Arabian Sea, Gulf of Oman or Red Sea shipping routes.

A final decision will depend on infrastructure availability, regulatory support, access to feedstock, construction schedules and the capacity of the host government to facilitate a development of this scale. The group said it remained willing to consider another Gulf location if it offered a substantially stronger proposal before the selection process closed.

The first phase carries an estimated capital cost of up to $5 billion. Funding is expected to combine sponsor equity, institutional and sovereign participation, international project finance, export-credit support and Sharia-compliant financing. No binding financing package, feedstock agreement, engineering contract or product offtake arrangement has yet been announced.

The sponsors have described the project as an integrated refining and export platform rather than a stand-alone processing plant. The refinery would focus on higher-value middle distillates, including ultra-low-sulphur diesel and jet fuel, for markets in the Gulf, the Atlantic Basin, the United States and other import-dependent regions.

Sustainable aviation fuel co-processing and carbon-management systems are also being evaluated. These components remain under consideration and will depend on final engineering, market demand, regulation and the availability of suitable raw materials.

A pre-feasibility study covering the refinery configuration, product range, logistics, preliminary costs and phased construction has reached an advanced stage. Once a host is chosen, the developers plan to undertake detailed site checks and engineering design.

Mechanical completion of the first phase is targeted for the end of 2029, followed by commissioning and commercial operations. That timetable would require the consortium to complete financing, permitting, front-end engineering, procurement and construction within a compressed period for a refinery and associated port complex.

Large downstream projects commonly face schedule pressures arising from cost inflation, engineering changes, contractor availability and environmental approvals. MERA Oil’s ability to meet its target will therefore depend on the speed of government decisions and the progress of commercial agreements after the site award.

Marc W. Gunderson, founder of MWG Enterprises, said the development concept, sponsor partnership and capital strategy had been assembled and that the consortium was now focused on choosing the host. He said the selected jurisdiction could gain a major refining, storage and export platform if it moved decisively during the coming months.

AHQ Group has operated across manufacturing and industrial services for decades, with activities including steel pipes, corrosion-control services, water-treatment chemicals, industrial gases, transport and logistics. Patel Family Office describes itself as a third-generation investment organisation with interests spanning energy, infrastructure, property, healthcare and other sectors.

The project emerges as Gulf governments seek to capture more value from hydrocarbons through refining, petrochemicals, storage, shipping and specialised manufacturing. New and expanded refining capacity has strengthened the region’s role as an exporter of diesel, aviation fuel and other products, particularly as older plants in Europe and other markets face tighter environmental rules and weaker margins.

Locating the proposed complex outside the Strait of Hormuz would be one of its central strategic features. The waterway carries a substantial share of internationally traded petroleum, but tensions involving Iran and Gulf states have repeatedly highlighted the risks of relying on a single maritime passage.